New Financing Gives Cash Flow Note Holders A Way Out

Seller-financed transactions no longer mean being stuck with small monthly payments for 30 years.

Private financing no longer needs to be "private". An unfortunate lack of knowledge has kept those that had to use seller (or private) financing in the dark. They agreed to this form of financing in order to sell their property, not realizing that they did not have to hang on to it for the full term. But, there is a way out.

But first, we need to understand what it is we are talking about. Seller-financed transactions help the seller get rid of their property, and gives them a monthly cash flow income. Which is not a bad way to go, unless the seller decides they would rather have a lump-sum of cash. In fact, most holders of notes didn't want the note in the first place, but it did help them sell the property. But now they are faced with receiving small monthly payments instead of the full amount that they were hoping to get.

Private financing has been around for centuries. But, this trend isn’t even fully understood by those in the trenches: real estate agents. And the funny thing is, seller financing in real estate sales, is considered the "granddaddy of the private cash flow industry." There is approximately $318 billion in privately held real estate notes, and this includes: residential, commercial, industrial, agricultural, and vacant land.

In the small business market approximately 90% of the sales are seller-financed. And in the "freestanding" mobile home resale sector, approximately 46% of the sales are seller-financed. Each year will bring over 180,000 new business notes worth over $25 billion and 500,000 new mobile home notes worth over $5 billion.

Selling these notes to investors is a new phenomenon that is reaching new heights. But to be quite frank, not all note holders will ever realize the potential for selling their note for cash because they don’t know they can. And not all notes will be viable with the investor community. Nevertheless, owners of these viable cash flow notes, will benefit greatly by deciding to sell.

It doesn't hurt to check with somebody to see if your note is viable. Waiting for the full term of a note to receive all of your money is not what most note holders want. You need and want more. It is possible for a note holder to get cash for their note. Finding an investor is fairly easy, and they usually can have a quote to the note holder within 24-48 hours.

If you are a note holder, my advice to you would be to stop hanging onto that note. Find an investor who will buy it. You will then have a lump sum of cash that you can use towards other investments, paying off debt, home improvements or just to feel you finally have YOUR money!